I didnt even mention land costs , and the cost of the construction itself , and commissions . 

As mentioned, I flipped 500 or so :) We were buying them for all in 20- 35k, 7, 8 9 years ago.

Create your own new LLC, then have him transfer the property to it and have the seller-financed mortgage mention your new LLC as the owner would be my suggested starting point.

The problem of course is that they always fail to mention the fee structure that is hidden on page 157 of the 200 page insurance policy handbook that they give you that describes how the policy operates.  

Not to mention the possibility of finding a new location to invest in that may have a higher growth rate since I think the current location has plateaued and might have reached it's peak in value at least for the near future.

@Jacob SwihartYour insurance will go up as Gustavo mentioned since it would be a rental income property.

I think personal circumstances are ready, and I just need to learn and get the local knowledge you mention.

Those major cities that you mentioned are fantastic options and have TONS of potential tenants/students, but their barrier of entry is much higher than traditional "college towns" like Lubbock or College Station.

It just was casually mentioned by the remaining female tenant at some point. 

@Jason ScottI would also take the higher rate and put less cash at closing as the delta as mention is $50/mo which means as long as you refi in next 4 years then taking the credit was the better choice.This is assuming the $50/mo does not have a significant impact on you and your finances.